An inexperienced accountant prepared this condensed income statement for Ivanhoe Company, a retail firm that has been in business for a number of years.

IVANHOE COMPANY Income Statement For the Year Ended December 31, 2017
Revenues
Net sales		$1,105,000
Other revenues		28,600
		1,133,600
Cost of goods sold		721,500
Gross profit		412,100
Operating expenses
Selling expenses		141,700
Administrative expenses		133,900
		275,600
Net earnings		$136,500

As an experienced, knowledgeable accountant, you review the statement and determine the following facts.

1.		Net sales consist of sales $1,184,300, less freight-out on merchandise sold $42,900, and sales returns and allowances $36,400.
2.		Other revenues consist of sales discounts $23,400 and rent revenue $5,200.
3.		Selling expenses consist of salespersons salaries $104,000; depreciation on equipment $13,000; advertising $16,900; and sales commissions $7,800. The commissions represent commissions paid. At December 31, $3,900 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense.
4.		Administrative expenses consist of office salaries $61,100; dividends $23,400; utilities $15,600; interest expense $2,600; and rent expense $31,200, which includes prepayments totaling $7,800 for the first quarter of 2018.

Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate. (List other revenues before other expenses. Round answers to 0 decimal places, e.g. 5,125.)

IVANHOE COMPANY Income Statement

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